Bank of America achieves record profits

The Bank of America has posted impressive first quarter figures, with profits up 14 per cent.

Net income increased to a record $4.99 billion, with earnings per share standing at a better than expected $1.07.

This compares favorably to profits of $4.39 billion and per share earnings of $1.07 for the same period the year before, with growth driven considerably by the acquisition of MBNA.

January's $34.2 billion acquisition of MBNA earned the bank 20 million new customers, with credit cards accounting for over a quarter of the bank's income.

Moreover, the bank claims that charges relating to the acquisition prevented it from posting achievable profits of $5.05 billion and per share earnings of $1.08.

"We have strong momentum in all our businesses as the benefits from continued execution in our consumer businesses were accompanied this quarter by a rebound in trading and good performance in investment banking and wealth management," said chairman and chief executive officer Ken Lewis.

The Bank of America had been expected to achieve per share earnings of just $1, based on predictions by analysts polled by Thomson Financial.

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